Gartner Research

Develop KPIs for Procurement Processes

Published: 23 November 2009

ID: G00172492

Analyst(s): Deborah Wilson


This research discusses the key performance indicators that the procurement organization should consider to baseline, track and encourage performance for four key processes: spending analysis, purchasing, strategic sourcing and supply base management.

Table Of Contents
  • Overview
  • Leverage KPIs for Each Procurement Process
  • Identify KPIs for the Top Four Procurement Processes
  • Spending Analysis
    • Process KPIs
    • Strategic KPIs
  • Purchasing
    • Process KPIs
    • Strategic KPIs
  • Strategic Sourcing
    • Process KPIs
    • Strategic KPIs
  • Supply Base Management
    • Process KPIs
    • Strategic KPIs
  • Vet Proposed KPIs for Credibility and Alignment
  • Baseline Current Processes Before Making Changes
  • Establish KPI Targets and Motivate Employees to Achieve Them
  • Monitor on an Ongoing Basis
  • Perform Root Cause Analysis
  • Adjust KPIs as Necessary

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